- US and Bangladesh to conclude tariff talks in Washington on July 29.
- 35 percent tariff threatens Bangladesh’s $8.2B garment exports.
- Bangladesh offers duty-free access for US goods in return deal.
Commerce Secretary Mahbubur Rahman announced that the United States and Bangladesh are set to conduct the final round of tariff talks on July 29th. The USTR, the main trade negotiation agency of the US government, invited Bangladesh, which had originally suggested rekindling discussions on July 26 at the USTR office in Washington D.C.
The delegation from Bangladesh, headed by Commerce Adviser Sk Bashir Uddin, is anticipated to visit the US on July 27th if the talks are held face-to-face. There is a chance that the discussions will take place online. Although certain private sector exporters might collaborate with the Bangladeshi team, they won't engage directly in the negotiations, which will occur solely among government representatives.
The Bangladeshi administration continues to be optimistic that the US will lower tariffs for Bangladesh, akin to the recent reductions awarded to other nations. For instance, tariffs have been reduced to 15% for Japan, 19% for Indonesia, 20% for Vietnam, and 19% for the Philippines. Bangladesh has proposed zero-duty imports of American goods, including cotton, wheat, liquefied natural gas, and aircraft, and is currently in talks to acquire 14 Boeing planes.
In the proposed agreement, Bangladesh has expressed readiness to adopt several US suggestions to enhance trade relations. The trade landscape is being shaped by the private sector's endeavors to engage a lobbying firm in the US to represent Bangladesh’s interests; however, advancements have been minimal because of time limitations and uncertainties related to the initiative.
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Industry leaders and policymakers recognize the possible effects of tariffs on Bangladesh’s exports, particularly within the garment industry. Apparel exports totaled US$8.2 billion last year, and a 35% tariff may create substantial difficulties, threatening market share and order losses in the US market. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) states that 1,322 garment factories are directly engaged in exports to the US.
Although some exporters have advocated for employing a lobbying firm to sway US policy, the government has suggested that these activities might have minimal effect on the negotiations. An inter-ministerial gathering on 20th July examined ways to lower import taxes on American products, to persuade the US government to provide Bangladesh with better tariff rates.
Regardless of these initiatives, the result of the impending negotiations is still unclear. The Bangladeshi government persists in implementing structural reforms and trade strategies to obtain more favorable conditions, aiming to avert the 35% tariff from being applied and protect its crucial export industries.